Manimama's experts are well versed in the complexities of cryptocurrency regulation and are committed to sharing their findings with businesses and individuals navigating this dynamic sector.
Indeed, our legal team recently finalized a comprehensive study on the national implementation of the Markets in Crypto-assets Regulation (MiCA) in various EU countries. The legal research not only highlights the differences in how MiCA is adopted at the national level, but also offers standard rules for compliance. Today we offer you an insight into the specifics of obtaining a cryptocurrency license in Finland under the new MiCA provisions.
Current requirements (prior to MiCA implementation)
The FIN-FSA shall register the notifier as a VCP if (6 § of the LVT):
1) the applicant is entitled to carry on business in Finland;
2) the notifier is not bankrupt and, if he is a natural person, he is of full age, has no restrictions on his capacity to act and has not been appointed a guardian;
3) the notifier is reliable. The criteria of reliability, compliance with which is necessary for registration, are specified in 7 § of the LVT.
§ 2 of the Act on Business Activities states that business activities may be conducted:
1) a natural person resident in the EEA;
2) a Finnish corporation or foundation;
3) a foreign corporation or foundation established under the law of a state belonging to the EEA and having its registered office, central administration or principal place of business in a state belonging to the EEA.
Requirements for VCP:
– A company registered in Finland (LLC (Oy))
– Detailed business plan
– Assessment of fitness and propriety of the applicant
– Corporate legal documents
– Authorization to practice a trade in Finland
– AML/KYC documents
– 2,500 EUR of share capital for an LLC
Registration form for VCP
Has the jurisdiction enacted a law/draft law implementing MiCA?
Ministry of Finance law drafting project VM103:00/2023: Implementation of the Regulation on markets in crypto-assets (2023/1114, MiCA) and the Regulation on information accompanying transfers of funds and certain crypto-assets (2023/1113, TFR)
Who is the regulator under the law/draft law implementing MiCA?
The Financial Supervisory Authority (FIN-FSA)
Requirements for future CASPs stipulated by the national legislation implementing MiCA, the presence of national peculiarities
The following proposal: (these provisions haven’t been adopted yet)
1. Alongside the current basic fee, a proportional monitoring fee is proposed. The relative supervision fee of the cryptocurrency service provider would be determined based on the service provider’s turnover and would be 0.3616 percent. The basic payment would be 8,220 euros.
The period of time by which the CASP must comply with the new requirements, as well as the procedure for notifying the regulator of compliance with the new requirements
Authorisation application and notification forms with their attachments are submitted to the FIN-FSA Registry: kirjaamo@finanssivalvonta.fi or by post to Finanssivalvonta, Kirjaamo, PO Box 103, 00101 Helsinki.
The European Securities and Markets Authority (ESMA) has published draft authorisation application and notification forms.
In accordance with MiCA, crypto-asset services may also be provided by financial entities that already have another authorisation granted by the FIN-FSA than an authorisation as a crypto-asset service provider. However, financial entities must file a notification of the matter to the FIN-FSA before providing these services.
Crypto-asset services may also be provided by financial entities that already have an authorisation granted by the FIN-FSA for other than the provision of crypto-asset services. With the exception of credit institutions, the range of permitted crypto-asset services is limited according to the type of authorisation. Financial entities, including credit institutions, must notify the FIN-FSA before providing services, however. The notification procedure for financial entities regarding for the provision of a crypto-asset service is set out in Article 60 of the MiCA Regulation as follows:
1. The financial entity must notify the competent authority at least 40 working days before providing crypto-asset services for the first time.
2. Within 20 working days of receiving the information, the competent authority must assess whether all of the necessary information has been provided. The deadline for providing any missing information shall not exceed 20 working days from the date of the request to provide such information.
*The 40 working day assessment period is suspended while the missing information is provided. The FIN-FSA may, at its discretion, still request supplementary information after this time, but the 40 working day period will not be suspended after the first request for supplementary information.
Is there a transition period before the full implementation of MiCA?
Provision of a crypto-asset service will require authorisation as of 30 December 2024. More detailed application periods and instructions for submitting an application for authorisation with regard to crypto-asset service providers (CASPs) will be published later on the FIN-FSA website. (As of now, it has been decided that no additional transition period will be presented.)
In addition, an entity currently providing virtual currency services based on registration granted by the FIN-FSA must apply for a new authorisation under the MiCA Regulation in order to continue its operations. The FIN-FSA will inform entities on this website as soon as possible about a possible national transition period, which is currently being assessed as part of the national legislative process. Virtual currency providers registered by the FIN-FSA will have the opportunity to submit an application for authorisation under the MiCA Regulation before 30 December.
The ability of a CASP from a jurisdiction with a transition period to operate freely in a jurisdiction without a transition period starting from January 1, 2025.
These provisions have not yet been adopted.
Liability provided for CASPs that continue to operate at the place of registration without meeting the new requirements
These provisions have not yet been adopted.
Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
